If income tax rates are cut,the size of the budget deficit will necessarily increase.

Name: If income tax rates are cut,the size of the budget deficit will necessarily increase.
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Question

Quizplus · Accepted Answer

This statement is not necessarily true. It depends on the specific circumstances and other economic factors, such as the level of government spending and the overall state of the economy. It is possible for income tax rate cuts to stimulate economic growth and increase revenue, thereby reducing the budget deficit.

If Income Tax Rates Are Cut,the Size of the Budget